OREANDA-NEWS. August 01, 2011. Rosneft (the “Company”) published its consolidated financial results under US GAAP for Q2 and 1H 2011, reported the press-centre of Rosneft .

In 1H 2011, Rosneft’s average crude oil output (including production by subsidiaries and share in production by affiliates) increased by 2.7% year-on-year, to 2,362 th. barrels per day. The increase reflects higher production at Vankor and Verkhnechonsk fields in Eastern Siberia and crude output growth at Sakhalin-1 project. The Company’s average daily crude oil production reached 2,368 th. barrels in Q2 2011 and rose to a record of 2,400 th. barrels in July, which was made possible due to on-schedule capacity expansion of oil treatment unit at the Vankor field.

Petroleum product output by Rosneft was 13.4 mln tonnes in Q2 2011, which is 20% higher year-on-year. The growth reflects acquisition of a 50% stake in Ruhl Oel GmbH, which owns stakes in four German refineries.

In Q2 2011, Rosneft’s revenues grew by more than 1.5 times year-on-year to USD 23,274 mln. The increase was primarily attributable to higher crude oil prices and growth of production and refinery throughput. In 1H 2011, revenues reached USD 43,397 mln, which is 44% higher compared with 1H 2010.

Rosneft’s EBITDA amounted to USD 5,333 mln in Q2 2011, which is an increase of 12% year-on-year. Tax burden rise, particularly due to abolition of a reduced duty for Vankor crude and introduction of increased export duty for naphta, put downward pressure on the figure. The increase was also tempered by real strengthening of the rouble against the USD, and higher transportation and electricity tariffs year-on-year. The above-mentioned negative impact was partially offset by tight cost control. Unit lifting costs increased by 4.4% quarter-on-quarter (to USD 3.1 per barrel) and unit refinery costs rose by 5.7% while real rouble appreciation was 6.2%. In 1H 2011, EBITDA grew by 30% year-on-year, to USD 11,986 mln.

In Q2 2011, free cash flow amounted to USD 1,730, up 8% year-on-year. As a result, in 1H 2011 the Company’s free cash flow increased by 66% year-on-year, to USD 4,911 mln.

Commenting on the results, Rosneft’s President Eduard Khudainatov said: “We posted good results for the second quarter, including record operating figures. We closed the deal on acquisition of a stake in German refineries, which resulted in insignificant net debt rise. EBITDA reduction quarter-on-quarter was anticipated following abolition of export duty for Vankor crude. Ongoing performance improvement, investment program implementation and higher shareholder returns are our priorities for the near future.”